EU and US could reach trade deal this weekend - Reuters
Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $1,200.00 price target on ServiceNow (NYSE:NOW), a $210 billion market cap software giant, following the company’s second-quarter 2025 earnings report. According to InvestingPro data, the stock currently trades near $1,005, with analysts’ targets ranging from $734 to $1,300.
The software company delivered what Cantor Fitzgerald described as "an impressive 2Q25 in a volatile software tape," with performance exceeding expectations across multiple metrics, leading to raised guidance. InvestingPro data shows ServiceNow maintains impressive gross profit margins of 78.5% and achieved robust revenue growth of 21.1% over the last twelve months.
ServiceNow demonstrated continued success with large-scale implementations, with deals exceeding $20 million in annual contract value growing 30% year-over-year, while its expansion into adjacent markets including CRM and Data showed promising results.
The company’s AI Control Tower product has already exceeded full-year net new annual contract value expectations just 60 days after release, while Now Assist closed its largest deal to date, exceeding $20 million in annual contract value.
Cantor Fitzgerald maintained its $1,200 price target, representing approximately 16 times calendar year 2026 enterprise value to revenue ratio, which the firm noted is a slight premium to ServiceNow’s one-year average, justified by the company’s "pole position in AI supported by 2Q25 momentum."
In other recent news, ServiceNow has been the focus of several analyst updates following its strong quarterly performance. The company reported a 21.5% growth in constant currency current remaining performance obligations (cRPO), surpassing both its own guidance and market expectations. This performance led to multiple analysts raising their price targets for the company. Stifel, Mizuho (NYSE:MFG), and Needham all increased their price targets to $1,200, while Citi went further, setting a new target at $1,234 due to AI momentum. Despite these positive outlooks, UBS took a more cautious stance, lowering its price target to $1,100, though it maintained a Buy rating. ServiceNow’s results exceeded guidance by 200 basis points for both Subscription Revenue and cRPO, with its Operating Margin also outperforming expectations by 270 basis points. The company’s strong enterprise execution across geographies and product lines has been noted as a key driver behind its robust performance. These developments reflect a strong consensus among analysts about ServiceNow’s current growth trajectory and potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.